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Highlights:
- Westpac confirmed that it was in talks with Tyro to acquire the firm.
- Tyro offers banking products and payment solutions to the Australian businesses.
Westpac Banking Corporation (ASX:WBC) on Tuesday confirmed that it was in “preliminary discussions” with Tyro Payments Limited (ASX:TYR) to buy the 100% of its issued share capital.
Banking and financial services provider Westpac expects the acquisition to boost the small business proposition of the company. The transaction would enable Westpac to support customers and expand merchant acquisition, especially in the healthcare and hospitality sectors.
However, Westpac also stated that there was no certainty that the transaction would take place in future.
What Tyro said on the latest development
Tyro said in an ASX filing that several parties had shown interest in buying the firm, including Westpac. The group added that it was in preliminary discussions with selected parties to maximise value for its shareholders.
Things to know about Tyro
Tyro is an ASX-listed software and service company that offers value-adding banking products and payment solutions to Australian businesses. The company provides reliable, flexible and simple payment solutions along with business banking products.
In the financial year 2022 (FY22), the group processed around AU$34.2 billion in transaction value. During the year, the company reported AU$154.7 million of statutory gross profit.
Share performance of Westpac
Westpac shares were heading north today. At 11:24 AM AEDT, Westpac shares were trading 1.66% higher at AU$23.82 apiece. In the past five trading sessions, Tyro’s share price has surged by 10.03%, and on a year-to-date (YTD) basis, it has increased by 9.93%. In the last 12 months, the company’s share price has dropped 6.92% and recorded a fall of 2.42% in the last six months.
Meanwhile, the ASX 200 financials (INDEXASX:XFJ) index was up 1.90% at 11:49 AM AEDT to 6,340.90 points.